TOKYO: Nissan Motor is in discussions to supply cars to Honda Motor in the United States, weighing the possibility of using its under-utilised U.S. plant, Nikkei reported on Friday without citing sources.

Nissan is considering manufacturing Honda’s pickup trucks at its Canton plant in Mississippi, where models like the Frontier are currently produced, the report said.

The reported discussions come at a time when the two automakers face challenging business conditions, including rising competition from Chinese automakers and ongoing U.S.-Japan trade negotiations over auto tariffs.

The two companies had previously held talks about a management integration to form the world’s third-largest automotive alliance, but failed to reach an agreement earlier this year.

A Nissan spokesperson did not immediately respond to a request for comment outside of regular working hours, while Honda officials were not immediately available for comment. 

Reuters